profit organizations Instructor Torres Week #3 May 15, 2017 Quiz #1 1. What are the categories that capture how much money you need to operate a non-profit organization? 2. What are 3 types of funding that is needed to run an organization? 3. What is a fundraising plan and what is its purpose? 4. Tell me 5 sources of fundraising revenue? 5. Give me 1 pro and 1 con of the following types of fund raising: Individual solicitations Special events Grants Review FOUNDATION: History of Nonprofits, Tax Exemption, Different Cultural Approaches to Fundraising FORMATION: Building Boards, Creating a Mission Statement, Goals and Objectives, Incorporation and Tax Exemption, Fundraising Structure and Elements HOW MUCH SHOULD BE RAISED: Intro to Organization Budget and how it is determined TYPES AND SOURCES OF FUNDING Diversifying INTRODUCED CASE FOR SUPPORT INTRODUCED THE FUNDRAISING PLAN Part 1: 3 Basic Building Blocks 3 Basic Building Blocks of Any Ask Issue/Cause What are you trying to change? Why? Beneficiaries Who is intended to benefit from this change? Why? Theory of Change Roadmap for change based on research that makes clear why you are approaching the issue the way you are approaching it and what your believe is possible. Building Block #1: Issue/Cause Start with the Mission Statement The Organization Mission Statement defines the main issue the organization is concerned with: CDTechs mission is to build livable and economically viable neighborhoods in LAs most neglected communities where 20% or more of the population lives at or below the poverty level. Core Issue = Poverty Core Issue = Community Conditions/Livability Core Issue = Economic Viability Building Block #1: Issue/Cause Needs/Opportunity Statement How do you know that the issue(s) your organization wants to change are significant for others to care about? Prepare a Need or Opportunity Statement. The Need or Opportunity Statement is a critical first step in this process because it is the first thing your donor/funder will look at to determine if, in their minds or experience, the organization overall or a proposed project of the organization meets an important societal need. Building Block #1: Issue/Cause Defining the Problem Pinpoint the problem it should be clearly defined because a problem that is not clearly defined in the readers mind is not a solvable problem use statistics, experts/research, real life example(s). BUT, dont paint a hopeless picture of the problem if donors/funders feel it is futile to try and fix they will direct their money toward a cause where they feel they can make a difference. Building Block #1: Issue/Cause What Should be Included in the Needs/Opportunity Statement The Nature and Extent of the Problem CDTech: 40% of communities we serve live at or below poverty, which is the definition of area of concentrated poverty. Largest area of concentrated poverty in the nation. Factors Contributing to the Problem or Conditions CDTech: Public/private disinvestment in the area, historic racial segregation, immigration/welfare policies. (Systemic Conditions) Impact of the Need/Problem CDTech: Because of disinvestment, at least 3 generations are impacted by underperforming education system, lack of access to higher education not just quality of life issues, but, impact on local and regional economy. Promising Approaches to Improved Results CDTech: Residents have a Ph.D. in life experience and community knowledge, when the education methodology honors this as the starting point, great gains are being made in academically. (Cite Paulo Freires theoretic framework work from Pedagogy of the Oppressed and documented results from CDTechs programs.) Building Block #2: Beneficiaries Who do you serve/engage through your organization? (Communities, special needs populations) What is the scale and scope of the service area? Where do they live? How many live there? General demographic information: age, ethnicity, education, household income and size What are their capacities/assets? Are there barriers/challenges specific to this population? What is the promise of the future for this population/ community if needs/opportunities are addressed now? Building Block #3: Theory of Change A Theory of Change (TOC) is a tool for developing and explaining to others (donors, funders, etc.) an organizations solutions to complex social problems. The TOC starts with an hypothesis: If ______, then ______. CDTech: If residents of low-income communities are empowered through knowledge of community development process and tools, then they themselves will be able to develop prosperity and justice in their communities. The TOC proceeds from that starting point to present the body of knowledge that supports the organizations approach to prevention, intervention, advocacy, etc. Generally, the TOC is presented in a diagram that flows from the main goal of an organization or project down through a series of outcomes and sub-outcomes to a set of fundable activities. [Review examples.] Example: 90011 Youth Advocates Issue/Cause: Poverty, Community Conditions, Economic Viability Intergenerational poverty Beneficiaries: Youth aged 15-24; Teen Parents 90011 has highest number of births to teen mothers in California; third highest rate of teen births Theory of Change: Social Determinants of Health (Center for Disease Control) Sociopolitical Development Theory Empowerment Strategy used root cause analysis to determine underlying factors: loneliness parents working all the time, opportunity no one at home, normalizing of teen parenthood high rates, peer pressure to be sexually active. [Going forward we would use this primary data gathered from youth to build a new Theory of Change that was more specific to the needs of the 90011 youth.] Develop a mock organization based on last weeks meeting. Mission Statement - A written declaration of an organizations core purpose and focus that normally remains unchanged over time. Properly crafted mission statements (1) serve as filters to separate what is important from what is not, (2) clearly state which populations will be served and how, and (3) communicate a sense of intended direction to the entire organization. http://www.businessdictionary.com/definition/mission- statement.html#ixzz3xAPImLho
Vision Statement: What the organization ultimately hopes to accomplish as a result of
its efforts.
Goals: Long-term, overall changes you wish to cause.
Objectives: Short-term, measurable steps you take to reach your goal.
REVIEW THE ELEMENTS SPECIFIC TO THE MOCK ORGANIZATION.
Part 2: Apply the 3 Building Blocks to the Mock Organization Small Group Work Each team will outline the Mock Organizations issue/cause, beneficiaries and Theory of Change from this discussion, name your organization! Share-out your small groups work results Discussion
HOMEWORK DUE NEXT WEEK
1. Develop a mock organization 2. Develop a mock budget utilizing the four categories we discussed in class. 3. Write an acquisition letter for a donor group identified in your small group work or a donor that you think would want to contribute to your mock organization.